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Friday, 16 September 2011 - Insight: Looming U.S. decision on Taiwan arms risks China rift |
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      Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Home Business Business Home Economy Technology Media Small Business Green Business Legal Deals Earnings Summits Business Video Markets Markets Home U.S. Markets European Markets Asian Markets Global Market Data Indices M&A Stocks Bonds Currencies Commodities Futures Funds peHUB World World Home U.S. Brazil China Euro Zone Japan Mexico Russia Afghan Journal Africa Journal India Insight Global News Journal Pakistan: Now or Never? 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Throughout this year, Washington and Beijing have sought to stabilize ties before both enter attention-sapping political seasons in 2012, when President Barack Obama faces re-election and China's Communist Party leadership changes hands. But Sino-American quarreling is likely to resume for a while if, as seems likely, the U.S. government announces before October 1 that it will offer to sell more weapons to Taiwan, the self-ruled island that Beijing deems a breakaway province. The Washington Times reported the Obama administration could brief the U.S. Congress on a Taiwan arms package as early as Friday, but the White House declined comment. The deal could sour the mood between the world's two biggest economies at a jittery time for global markets, even if China confines its response to angry words and largely symbolic recriminations, said several experts. "China will oppose in principle any decision to sell weapons to Taiwan, but how China expresses its opposition and how strongly will depend on the substance of the decision," said Wu Xinbo, deputy director of the Center for American Studies at Fudan University in Shanghai. Taiwan has been a perennial source of discord between the United States and China. But nowadays China also faces growing expectations at home that it will use its growing strength to press demands abroad, especially when the United States and other Western nations are beset by economic woes. UNACCEPTABLE "I think that whether it's the (Chinese) government or the public, there's a deepening feeling that U.S. arms sales are increasingly unacceptable to China -- that this problem should not keep dragging on," Wu said in a telephone interview. China calls the U.S. arms sales meddling in a domestic dispute. It has never renounced the use of force to bring the island under its control, especially if Taiwan formally seeks independence. Washington says it wants Taiwan and China to settle their dispute peacefully and is obliged by U.S. law to help the island defend itself. Some Congressmen go further. "Saying no here would mean granting Communist China substantial sway over American foreign policy, putting us on a very slippery slope," said Republican Congressman John Cornyn in a statement this week. Chinese analysts expect a vehement reaction to the impending announcement because of the sense that China is growing more powerful. "Many members of the Chinese public believe their country is quickly becoming strong, and the United States is in decline, so we should no longer be afraid of the United States, and not make as many concessions as the past," Wang Jisi, a professor of international relations at Peking University, told a recent seminar in Beijing. China has been especially loud about opposing any U.S. offer to sell Taiwan advanced F-16 fighter jets that would bolster its air defenses. It's unclear whether Washington will offer them this time, but China could respond strongly even if F-16s are not put forward, said Wu, the Fudan University professor. The Washington Times said Obama had decided against including the new jets but would give the island a $4.2 billion arms package. "The public isn't concerned about what specifically you sell to Taiwan. It feels that selling the weapons in itself shows the United States lacks respect for China," Wu said. "It's like a friend slapping another friend on the face. It doesn't matter whether you slap two times or three times." Cornyn, who is from Texas, where Lockheed Martin Corp manufactures the fighter jets, noted that Taipei was also a U.S. friend. "This sale is a win-win, in strengthening the national security of our friend Taiwan as well as our own, and supporting tens of thousands of jobs in the U.S." BACK TO 2010? Last year, U.S. arms sales to Taiwan were among the disputes that ignited tensions with China, where the condemnation of the Obama administration's decision was accompanied by a chorus of public demands, including from military officers, that China should use its growing strength to punish Washington. Since then, the government has sought to rein in People's Liberation Army pundits from speaking strongly about sensitive issues. But Chinese media and Internet have continued to call for a tough response on any new U.S. arms offers to Taiwan. Backed by that public anger, the Chinese government could turn an aggressive face to the Obama administration. But most observers said they expect China to hold back from retaliatory steps that could spook markets or overshadow meetings between Obama and Chinese President Hu Jintao at summits this year. "I think the leadership is intent on keeping the relationship steady despite the arms sales," Linda Jakobson, the East Asia Program Director at the Lowy Institute for International Policy in Sydney, said of China. "I think there has been a policy decision to keep the relationship stable, but when it comes to how to avoid a downturn despite the arms sale, I think there is a diversity of views of how to do this." (Editing by Brian Rhoads and Raju Gopalakrishnan) World China Related Quotes and News Company Price Related News Tweet this Link this Share this Digg this Email Reprints   We welcome comments that advance the story through relevant opinion, anecdotes, links and data. If you see a comment that you believe is irrelevant or inappropriate, you can flag it to our editors by using the report abuse links. Views expressed in the comments do not represent those of Reuters. For more information on our comment policy, see http://blogs.reuters.com/fulldisclosure/2010/09/27/toward-a-more-thoughtful-conversation-on-stories/ Comments (0) Be the first to comment on reuters.com. Add yours using the box above. Social Stream (What's this?)   Edition: U.S. Africa Arabic Argentina Brazil Canada China France Germany India Italy Japan Latin America Mexico Russia Spain United Kingdom Back to top Reuters.com Business Markets World Politics Technology Opinion Money Pictures Videos Site Index Mobile Legal Bankruptcy Law California Legal New York Legal Securities Law Support & Contact Contact Us Advertise With Us Connect with Reuters Twitter   Facebook   LinkedIn   RSS   Newsletters About Privacy Policy Terms of Use Our Flagship financial information platform incorporating Reuters Insider An ultra-low latency infrastructure for electronic trading and data distribution A connected approach to governance, risk and compliance Our next generation legal research platform Our global tax workstation Thomsonreuters.com About Thomson Reuters Investor Relations Careers Contact Us   Thomson Reuters is the world's largest international multimedia news agency, providing investing news, world news, business news, technology news, headline news, small business news, news alerts, personal finance, stock market, and mutual funds information available on Reuters.com, video, mobile, and interactive television platforms. 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